FloodSmart.gov, a component of the Federal Emergency Management Agency (FEMA), states floods are the nation's most common natural disaster. According to FEMA, the total annual damages for 2017 reached more than $8.7 million.

Flood insurance is a must-have for virtually all homeowners, especially those who live in areas that are more susceptible to the events. Unfortunately, many misperceptions abound when it comes to flood insurance that can leave a homeowner at risk of substantial loss.

Here are the top myths about flood insurance:
​1. Homeowners insurance covers floods
This might be the most commonly believed myth about flood insurance, as well as the most risky. The National Flood Insurance Program, an agency that runs out of FEMA, notes thatmost homeowners insurance does not cover flood damage.

2. An NFIP policy is all you need
The NFIP offers policies to homeowners in most regions, but those policies have a maximum of $250,000 in building coverage and $100,000 in contents coverage. This might not cover the full range of your needs following a flood. Additional limits may be available to provide you with more coverage.

3. You don't live in a flood zone
Living in an arid climate or higher elevation, you might think your home will not be impacted by a flood. The NFIP points out that it takes only a few inches of water to cause significant damage to the home. While you might not live in an area that commonly experiences floods, the possibility of flooding exists in most locations.

4. The federal government will make everything alright
Another extremely dangerous myth: You might think that a disaster assistance program from the federal government will return you back to financial health. However, this is not true. FEMA notes fewer than half of all flooding events lead to assistance. Additionally, assistance often comes in the form of a loan that must be paid back with interest - meaning it is not a replacement for insurance.